Quiz 3 Chapters 8 & 9 (2%) - Week 9 Attempt review PDF

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9/2/2021

Quiz 3: Chapters 8 & 9 (2%) -- Week 9: Attempt review

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AF208_202101> Quiz 3: Chapters 8 &... Started on State

Completed on Time taken Mark Question

Wednesday, 19 May 2021, 12:32 AM Finished Wednesday, 19 May 2021, 12:57 AM 24 mins 44 secs 9.00 out of 10.00 (90%)

1

Incorrect Mark 0.00 out of 1.00

No one has perfect hindsight. Select one: a. True

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b. False

The correct answer is: False

Question

2

Correct Mark 1.00 out of 1.00

A project will generate cash inflows of $10 000 next year and $20 000 in the following year. Initial costs are $5000. The cost of capital is 8% The NPV of this project is Select one: a. $23 295 b. $20 000 c. $22 400 d. $21 406

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The correct answer is: $21 406

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9/2/2021

Quiz 3: Chapters 8 & 9 (2%) -- Week 9: Attempt review

Question

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Correct

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AF208_202101> Quiz 3: Chapters 8 &...

A project is expected to produce net profits of $5000 next year and $10 000 the following year. An asset must be purchased and will be depreciated over the next two years with zero salvage value. The expected ARR on this project is 12.5%. This necessarily implies an asset cost of Select one: a. $100 000 b. $120 000

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c. $110 000 d. $130 000.

The correct answer is: $120 000

Question

4

Correct Mark 1.00 out of 1.00

An asset costs $35 000 and its effective life is 10 years. Under prime cost depreciation, the annual depreciation charge would be Select one: a. $350 000 b. $3500

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c. None of the above d. $4000

The correct answer is: $3500

Question

5

Correct Mark 1.00 out of 1.00

Accounting rate of return measures a projects profitability using the ratio of total profits to total investment. Select one: a. False

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b. True

The correct answer is: False

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9/2/2021

Quiz 3: Chapters 8 & 9 (2%) -- Week 9: Attempt review

Question

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Correct

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AF208_202101> Quiz 3: Chapters 8 &...

Net working capital is the excess of current assets over current liabilities. Select one: a. True

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b. False

The correct answer is: True

Question

7

Correct Mark 1.00 out of 1.00

Non financial factors may ce negative NPV projects to be accepted or positive NPV projects to be rejected. Select one: a. False b. True

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The correct answer is: True

Question

8

Correct Mark 1.00 out of 1.00

A negative NPV project would Select one: a. be accepted by the firm b. none of the above. c. have an IRR that is greater than the cost of capital d. have an IRR that is less than the cost of capital

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The correct answer is: have an IRR that is less than the cost of capital

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9/2/2021

Quiz 3: Chapters 8 & 9 (2%) -- Week 9: Attempt review

Question

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Correct

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AF208_202101> Quiz 3: Chapters 8 &...

Which of the following is false concerning mutually exclusive projects Select one:

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a. None of the above. b. Mutually exclusive projects may utilise the same scarce physical resources c. Acceptance of one project means that the other projects will be rejected d. Mutually exclusive projects may perform the same task

The correct answer is: None of the above.

Question

10

Correct Mark 1.00 out of 1.00

Opportunity costs are Select one: a. cash outflows required in the daily activities of a project b. cash outflows that occur at the end of a project

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c. cash flows forgone when a particular course of action is chosen. d. cash outflows that occur prior to the evaluation of a project

The correct answer is: cash flows forgone when a particular course of action is chosen.

◄ Quiz 2: Chapter 6 & 7 (2%) -- Week 6 ump to... Q i 4 Ch

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